mm2 Asia

[¯|_(ツ)_/¯]

mm2 asia@7.2
Going concerns
https://links.sgx.com/FileOpen/Clarifica...eID=674820
https://links.sgx.com/FileOpen/Unmodifie...eID=674564


Stay home and stay safe, everyone.

[karlmarx]

Just as the recovery is on the horizon, mm2 is throwing in the towel and selling its cinemas for half or more of its purchase price. Given its financial situation, they probably had no choice to this fire sale. If they had tried to sell this last year, they might have gotten a better price. Like most stockholders in the red, they were probably hoping for the pandemic situation to get better sooner rather than later.

Crowds will eventually be back in cinemas when things return to normal, so it looks like a pretty good deal for the buyer.

With the benefit of hindsight, mm2 levered at the wrong time for this acquisition, and it is close to costing them everything. A good reminder that the use of leverage -- whether on a corporate or personal level -- should be carefully considered, and that even the smart users can get burned.

https://www.straitstimes.com/business/co...properties

[CY09]

https://links.sgx.com/FileOpen/20211208%...eID=693693

Spin off dreams is dashed. Cinema business is not improving much when currently government mandates only a 50% capacity.
Expect more cash burn while the CEO and mgmt enjoys a basic pay package, the company is worth more dead than alive.

[weijian]

Just as the recovery is on the horizon, mm2 is throwing in the towel and selling its cinemas for half or more of its purchase price. Given its financial situation, they probably had no choice to this fire sale. If they had tried to sell this last year, they might have gotten a better price. Like most stockholders in the red, they were probably hoping for the pandemic situation to get better sooner rather than later.

Crowds will eventually be back in cinemas when things return to normal, so it looks like a pretty good deal for the buyer.

With the benefit of hindsight, mm2 levered at the wrong time for this acquisition, and it is close to costing them everything. A good reminder that the use of leverage -- whether on a corporate or personal level -- should be carefully considered, and that even the smart users can get burned.

https://www.straitstimes.com/business/co...properties

Looking back at the SPA agreement in Aug, the 6mil deposit was already not refundable in cash and would be converted to shares based on 8cents.

This conversion is higher than the current market value and the last rights issue in April 2021. This is a good deal for now.

mm2 Cinema Sale On Hold

• Kingsmead Properties converts $6m deposit into mm2 shares at 8 cents

https://links.sgx.com/FileOpen/20220103%...eID=696437

[ghchua]

Looking back at the SPA agreement in Aug, the 6mil deposit was already not refundable in cash and would be converted to shares based on 8cents.

This conversion is lower than the current market value and the last rights issue in April 2021. This is a good deal for now.

I think you meant that conversion price at 8cts is higher than current market value and last rights issue? That's why its a good deal.

[weijian]

Looking back at the SPA agreement in Aug, the 6mil deposit was already not refundable in cash and would be converted to shares based on 8cents.

This conversion is lower than the current market value and the last rights issue in April 2021. This is a good deal for now.

I think you meant that conversion price at 8cts is higher than current market value and last rights issue? That's why its a good deal.

hi ghchua,
Yes, that was what I meant. Thanks for spotting it!

[CY09]

https://www.channelnewsasia.com/singapor...30-4421641

Cinema business is still struggling and its segment reporting of the cinema business shows quite a substantial loss. No doubt MM2 Asia is trying to sell it, but the continued downsize in my view might mean the entire cinema business is not viable. Pherhaps MM2 should impose some pressure on the Cathay Cinema board to totally close its operations to resuce its own balance sheet

[weijian]

Ron Sim to the rescue. MM2 Asia has a huge debt load but some of its business is still very viable. The unfortunate thing is that the viable business needs a lot of working capital to produce eventual profits.

75% of the placement proceeds are assigned to working capital. If this rescue works out, the investment will produce multiple fold returns for Ron Sim.

mm2 Asia Proposes S$30M Placement To Strengthen Financial Position And Drive Sustainable Growth

V3 Group, the Singapore-based holding company led by Mr. Ron Sim, intends to subscribe to not less than S$15 million of the placement, potentially becoming the single largest shareholder of the media entertainment and content company with ~18% equity stake.

https://links.sgx.com/FileOpen/mm2%20Asi...eID=814149